Revenue and debt grows sizeably at WPP

Advertising and public relations group WPP reported billings of £11.922bn in its first quarter on Thursday - an increase of 8.3%, or 6.7% at constant currencies.

The FTSE 100 firm said revenue in the four currencies it reports in went up 10.5% to £3.076bn, 4.6% to $4.402bn, 6.3% to €3.989bn, and 0.9% JPY 506.611bn.

Constant currency revenue grew 9.0%, while like-for-like revenue was ahead by 5.1%. Constant currency net sales - WPP’s preferred measure - was up 6.7%, while like-for-like net sales grew 3.2%.

“First quarter revenue, net sales and profit [was] well above budget and ahead of last year,” WPP’s board said in a statement.

Its constant currency net debt also grew, and was £701m higher on 31 March this year than it was on the same date in 2015. Average net debt in the first quarter was up by £767m over the same period a year earlier.

WPP put the large growth in net debt to strong acquisition activities, as well as its share buy-backs of £62m during the period, representing 3.9 million shares or 0.3% of issued share capital.

“Recent new business activity and net new business wins continue,” the board added, reflecting its success in the recent United States media ‘tsunami’ and its emphasis on technology, data and content, as well as talent and pricing.